Obama Administration Will Pay Companies to Violate the Law
The Obama Administration’s disregard for the law has struck again—and this time, it’s encouraging others to violate the law at taxpayer expense.
That’s worth saying again: The Obama Administration is encouraging people to violate a law, and promising that it will use taxpayer money to cover fines incurred from this action.
The law: The law in question is called the WARN Act, and it requires that federal contractors send employees layoff notices 60 days before a plant closing or mass layoff.
The inconvenience: Massive defense spending cuts under sequestration are scheduled to hit on January 2, 2013. Defense contractors affected by the budget cuts would have to issue notice letters to employees by November 2 (four days before the election) to meet the January 2 start date for the spending cuts.
The penalty taxpayers would pay: Employers who violate the WARN Act are liable to their former employees for “back pay for each day of a violation” and “benefits under an employee benefit plan,” as well as a penalty of $500 for each day that notice has not been sent to the local government where the layoffs will occur.
As an example, Lockheed CEO Bob Stevens has said that 123,000 of his employees would receive layoff notices. If companies fail to meet the WARN Act’s deadline, lawsuits from employees could result—but the White House has provided a taxpayer-funded guarantee as a way to counter their fears of enormous litigation costs. This guarantee is not only unprecedented but also potentially unlawful.